From 1940 to 1960, the rate of homeownership in America grew from 44% to 62% — a dramatic change in how Americans went about housing themselves and their families.
Homeownership had been a thing for the middle-aged before that, but no more. Soldiers returning from World War II and their wives, who had developed professional skills during the war, drove the increase. Homeownership was rising before the Great Depression hit, but the uptick was an irreversible force.
And then it stopped. The homeownership rate was at 65.2% in 2025 — it’s barely budged in nearly 70 years. Politicians from both parties have sought to break the deadlock and make housing more affordable for more families, but efforts have largely failed.
Beginning in the early 1990s, Fannie Mae and Freddie Mac, the two federal taxpayer-backed mortgage loan giants, not only offered government-backed loans, which meant lower interest rates, but they also changed the rules to allow less qualified borrowers to receive more loans.
The results were predictable — massive corruption, as lenders who realized they enjoyed essentially endless government backing grew extremely careless. This went on throughout the Clinton and George W. Bush administrations until 2008, when Congress had to bail out the financial sector to the tune of $850 billion, which was real money back then.
So, we learned our lesson, right? No more goosing the system to try to jack up the homeownership rate, right? No more ill-considered rule changes to cut corners and smooth the process, right?
Of course not.
The new threat is an attempt at cost-cutting that does so little good and so much potentially bad that it’s hard to believe this is on the level.
During the Biden administration, the Federal Housing Finance Agency proposed to let mortgage lenders check just one or two of the credit bureau services, instead of the current process, in which all three — Equifax, Experian, and TransUnion — are reviewed to evaluate borrowers (known as the “tri-merge” credit reporting standard).
Recently, the Mortgage Bankers Association revived this Biden-era idea and wants the FHFA to change the rules so that only one of the three reports would be required. It says the current model costs too much, limits competition, and is unnecessary given today’s reporting capabilities.
The cost of a tri-merge credit report is nearly $100, and the mortgage bankers say it’s no longer needed.
First, as to the cost issue, the single-merge or bi-merge systems being proposed aren’t free, meaning the move would save maybe $70 out of closing costs that run $7,000 to $10,000.
Moreover, it’s not like all three reports gather the same information. Fintech loans and what used to be called layaway accounts appear on some but not others. Community bank lines of credit appear on some but not others. Reducing the input merely increases the likelihood that meaningful data will go undiscovered.
Scores among the three agencies can vary by as much as 45 points — easily enough to render a capable borrower ineligible or a shaky borrower eligible, which would be bad for both lenders and borrowers.
An analysis included in a letter from some House members, led by Rep. Scott Fitzgerald (R-WI), found that moving from the tri-merge method to the bi-merge system would enable 1.7 million borrowers who wouldn’t otherwise qualify. That’s the “why” of this, in case you’re wondering.
ENDING LA’S HOUSING INDUSTRIAL COMPLEX
This is how we get into these messes. Yes, this expands the American dream of homeownership to 1.7 million more people. But those people are kept out now for a reason, and that reason all too often is that they can’t afford to own a home. Cutting this corner to save $70 in a $7,000 closing places millions of Americans in a precarious situation.
The Trump administration deserves credit for trying to make homeownership more affordable and understanding the responsible ways to do so. As of May, the Federal Housing Administration announced it will continue to use the tri-merge model. Changing the rules will do more harm than good. Others need to recognize the same and resist efforts to cut corners.
Brian McNicoll is a freelance writer based in Alexandria, Virginia, a former senior writer for the Heritage Foundation, and former director of communications for the House Committee on Oversight and Government Reform.